In the crypto space, if you want to achieve the goal of 1 million in capital, especially starting from tens of thousands, there is only one path to take: that is rolling positions.
When you accumulate a principal of 1 million, it seems that your whole life is renewed. Even without using leverage, relying solely on a 20% increase in the spot market, you can earn 200,000, which is already the upper limit of annual income for most people.
Moreover, during the process of growing from several tens of thousands to 1 million, you will gradually comprehend some ideas and logic for making money. At this point, your mindset will also become more peaceful, and the subsequent operations will turn into copy and paste.
Remember, do not always think about getting rich overnight. Goals of millions or billions should start from your actual situation. Empty talk will only make people uncomfortable. Trading requires the ability to recognize the size of opportunities. You cannot always trade with small positions, nor can you always trade with large positions. You can operate with small amounts regularly, and when a real big opportunity arises, then go all out.
For example, rolling positions is a strategy that can only be conducted when great opportunities arise. You do not need to operate frequently; missing one time is okay. After all, you only need to successfully roll positions three or four times in your life to go from zero to tens of millions, and tens of millions is enough to elevate an ordinary person to a wealthy status.
A few points to note about rolling positions:
1. Sufficient patience; the profits from rolling positions are enormous. As long as you can roll successfully a few times, you can earn at least tens of millions or even hundreds of millions. Therefore, you cannot roll easily; you must seek opportunities with high certainty.
2. High certainty opportunities refer to sideways consolidation after a sharp decline, then breaking upwards. At this point, the probability of following a trend is very high. You must find the point of trend reversal and jump in right away.
3. Only roll long positions;
▼ Risks of rolling positions
Let's talk about the rolling position strategy. Many people think this is risky, but I can tell you that the risk is very low, much lower than the logic of the contracts you are playing with. If you only have 50,000, how to start with 50,000? First, this 50,000 should be your profit; if you are still at a loss, don't look at it anymore.
If you open a position in Bitcoin at 100,000, set the leverage to 10 times, and use a cross-margin model, only opening 10% of the position, which means only opening 5,000 as margin, this is actually equivalent to 1x leverage, with a 2-point stop loss. If you hit the stop loss, you will only lose 2%, which is just 1,000.
How do those who get liquidated actually get liquidated? Even if you get liquidated, isn't it just a loss of 5,000? How can you lose everything? If you are correct and Bitcoin rises to 110,000, you continue to open 10% of your total capital, and also set a 2% stop loss. If you hit the stop loss, you still earn 8%. Where's the risk? Didn’t they say the risk is very high? And so on...
If Bitcoin rises to 150,000, and you increase your position smoothly, during this 50% market movement, you should be able to earn around 200,000. Seizing two such opportunities means around 1 million. There is fundamentally no compound interest involved; 100 times comes from two instances of 10 times, three instances of 5 times, and four instances of 3 times earned, not from compounding 10% or 20% daily or monthly. That’s nonsense.
This content not only has operational logic but also contains the core trading principles, position management. As long as you understand position management, you can never lose everything.
This is just an example; the general idea is like this, but specific details need to be pondered by yourself. The concept of rolling positions itself does not carry risks; not only does it not have risks, but it is also one of the most correct ideas for trading contracts.
Here I want to emphasize that in the crypto space, you should only invest one-fifth of your money, and only invest one-tenth of your cash in contracts. At this point, the contract funds only account for 2% of your total capital, and the contracts should only use two to three times leverage, and only trade Bitcoin, which can be said to reduce the risk to an extremely low level.
▼ How to grow small funds
Many people have misconceptions about trading. For example, small funds should trade short-term to grow their capital. This is a complete misconception. This kind of thinking is trying to exchange time for space, attempting to get rich overnight. Small funds should actually focus on medium to long-term trading to grow larger.
Is one piece of paper thin enough? If a piece of paper is folded in half 27 times, it becomes 13 kilometers thick. If you fold it 10 more times to 37 times, it would be thicker than the Earth. If folded 105 times, the entire universe would not be able to contain it. If you have 30,000 in capital, you should think about how to triple it in one wave, and then triple it again in the next wave... then you will have four to five hundred thousand. Instead of thinking about earning 10% today, 20% tomorrow... you will eventually ruin yourself.
Always remember, the smaller the capital, the more you should focus on long-term trading. Relying on doubling through compound interest to grow larger, do not engage in short-term trading for small profits.
▼ How to minimize the risks in contracts
I won’t elaborate on this; the bigger the storm, the more expensive the fish. Different people have different insights.
What I want to say is that some parts of the text, such as 'opening a position in Bitcoin at 100,000', are just examples and not investment advice. Investment requires caution.
Thank you all for getting this far. I hope it can help you. If you have different opinions and methods, please feel free to point them out in the comments.
Finally, I wish everyone in the crypto space can earn their first 1 million!